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Industrial conglomerate Wesfarmers is going ahead with its $A776M, $1.90-a-share takeover bid for Kidman Resources and its 50% of the proposed long-life Mt Holland lithium mining/refining operation in Western Australia after completed its exclusive period of due diligence.The 2 have entered an agreement for a scheme of arrangement backed by the Kidman board, but still subject to a range of conditions, including Kidman shareholder approval and an independent expert reports, with the deal expected to be done by early Sept 2019.

Retail-industrial conglomerate Wesfarmers’ latest move to secure a position in the emerging boom for battery market minerals could help to realise the vision of establishing Western Australia as a global hub for downstream lithium processing. John Feary reports

Chilean mining giant Sociedad Quimica y Minera de Chile has welcomed the $A776M bid by Australian conglomerate Wesfarmers for Kidman Resources, its 50% partner in the proposed development of a long-life lithium mine and refinery in WA.SQM chief executive Ricardo Ramos says Wesfarmers’ significant local infrastructure, experience and chemical processing capability will be ideally suited to the Mt Holland project development.

Australian retail-industrial conglomerate Wesfarmers has launched a new $A776M bid for a stronger position in the advanced minerals sector following its rejected $1.5B bid for Lynas Corporation, this time targeting lithium mine-and-refinery proponent Kidman Resources.Kidman is a 50-50 partner with Chile’s Sociedad Quimica y Minera in the proposed $US737M development currently slated to produce 45,254tpa battery grade lithium hydroxide over a 47-year mine life at Mt Holland in WA.

A new study has added new positive fuel to 2 recent studies on the Mt Holland lithium mine-to-refinery project in Western Australia, cutting total capex for the 47-year LoM operation to $US737M from $755M, with production unchanged at an average 45,254tpa of battery grade lithium hydroxide (LiOH), but with cash costs up due to lower Li2O grades.Kidman Resources/ Sociedad Quimica y Minera de Chile DFS expected to be completed in H1 2019, after which a final investment decision will be made.

2 new studies paint a bright future for the joint Australian-Chilean companies development of an integrated $US755M capex, 47-year LoM Western Australia lithium mine and refinery generating LoM revenue of $US33.5B and project EBITDA of $22B, an average revenue of $713M pa and EBITDA of $467M pa.

A row over $A100,000 could delay the development of a globally significant integrated lithium mine, concentrator and refinery by Kidman Resources and its Chilean JV partner SQM in Western Australia.The Mt Holland JV partners want WA mines minister Bill Johnston to use his powers to reject a Mining Warden’s court ruling that could lead to the forfeiture of 13 tenements at its Mt Holland mine site.